Mkpoikana Udoma
Port Harcourt — President Bola Ahmed Tinubu has approved a targeted fiscal incentive package aimed at unlocking the long-delayed Bonga Southwest Aparo deepwater project, a move expected to attract about $20 billion in foreign direct investment into Nigeria’s oil and gas sector.
The development marks a major step toward securing the Final Investment Decision, FID, on the Bonga Southwest Aparo project, which industry stakeholders say could reposition Nigeria as a leading destination for deepwater investment.
The approval followed months of negotiations involving NNPC Limited, the Nigeria Revenue Service, the President’s Special Adviser on Energy, Olu Verheijen, and Chief Executive Officer of Shell plc, Wael Sawan.
The decision followed President Tinubu’s directive during a courtesy visit by Shell’s CEO to fast-track key enablers required to move the strategic deepwater asset to FID.
Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the approval as a breakthrough after nearly two decades of delays.
“This approval is a testament to the President’s leadership, NNPC’s disciplined execution and our ability to structure complex, bankable transactions that deliver value for Nigeria,” Ojulari said.
“For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam.”
Ojulari added that the milestone reflects the national oil company’s strategy to unlock Nigeria’s energy potential through partnerships and policy clarity.
“This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence,” he said.
The project will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, signalling renewed investor confidence in the country’s energy reforms.
The fiscal incentive package approved by the President includes an enhanced Production Tax Credit and the resolution of issues surrounding the 2021 dispute settlement agreement, measures designed to improve project economics while protecting Nigeria’s long-term interests.
NNPC Limited, acting as concessionaire, worked closely with Shell Nigeria Exploration and Production Company and other international oil company partners to develop alternative fiscal solutions to address structural challenges that had previously stalled the project.
According to NNPCL, the proposals were subjected to rigorous evaluation by the National Revenue Service before final recommendations were submitted to the Presidency for approval.
The Bonga Southwest Aparo project, operated by Shell in partnership with other international oil companies, is expected to create over 5,000 direct and indirect jobs once development begins.
Upon completion, the project is projected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas per day, strengthening Nigeria’s energy supply and export capacity.
With presidential approval now secured, NNPC Limited and its partners are expected to advance toward the Final Investment Decision, triggering the multi-billion-dollar capital commitment required to develop the deepwater asset.
This article was originally posted at sweetcrudereports.com
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